China Tells a Whopper

As you’ll see in this item from Bloomberg News, People’s Bank of China Assistant Governor Ma Delun said on Friday that the market is determining the value of the Chinese currency (yuan), that it is not being manipulated by the Chinese government. Looks like Governor Ma may have had too much maotai.The Chinese have been amassing their reserves of US dollars in an effort to keep the yuan deliberately undervalued. Ma claimed that the currency wasn’t to blame for the US trade deficit, adding that, ‘ Workers’ pay in China is 1/33rd of that of a U.S. worker. The U.S. has to accept this global reallocation of industries.’